FRANCHISE INVESTMENT LAW
Act 269 of 1974
445.1503 Additional definitions; burden of proof.
Sec. 3.
(1) "Franchise fee" means a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services. The following are not the payment of a franchise fee:
(a) The purchase or agreement to purchase goods, equipment, or fixtures directly or on consignment at a bona fide wholesale price.
(b) The payment of a reasonable service charge to the issuer of a credit card by an establishment accepting or honoring the credit card.
(c) Amounts paid to a trading stamp company by a person issuing trading stamps in connection with the retail sale of merchandise or service.
(d) Payments made in connection with the lease or agreement to lease of a franchised business operated by a franchisee on the premises of a franchisor as long as the franchised business is incidental to the business conducted by the franchisor at such premises.
(2) "Fraud" and "deceit" are not limited to common law fraud or deceit.
(3) "Offer" or "offer to sell" includes an attempt to offer to dispose of or solicitation of an offer to buy, a franchise or interest in a franchise for value. The terms defined in this act do not include the renewal or extension of an existing franchise where there is no interruption in the operation of the franchised business by the franchisee.
(4) "Order" means a consent, authorization, approval, prohibition, or requirement applicable to a specific case issued by the department.
(5) "Person" means an individual, corporation, a partnership, a joint venture, an association, a joint stock company, a trust, or an unincorporated organization.
(6) "Publish" means publicly to issue or circulate by newspaper, mail, radio, or television or otherwise to disseminate to the public.
(7) "Rule" means a rule promulgated by the department.
(8) "Sale" or "sell" includes a contract or agreement of sale of, contract to sell, or disposition of, a franchise or interest in a franchise for value.
(9) "State" means a state, territory, or possession of the United States, the District of Columbia, and Puerto Rico.
(10) In any proceeding under this act, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
History: 1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
Notes of Decisions
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006).
· cites it 6× “Under MCL 445.1503(1), a “franchise fee” is defined as “a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006).
· cites it 6× “Under MCL 445.1503(1), a "franchise fee" is defined as "a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Franchise Mgmt. Unlimited, Inc v. Am.’s Favorite Chicken, 561 N.W.2d 123 (Mich. Ct. App. 1997).
· cites it 4× “[MCL 445.1503(3); MSA 19.854(3)(3).] Giving the terms used in § 31 their defined meanings, this Court concludes that plaintiffs do not have a § 5 claim as a matter of law because the statute only imposes liability on a person who offers or sells a franchise in violation of § 5.”
Galper v. United States Shoe Corp., 815 F. Supp. 1037 (E.D. Mich. 1993).
· cites it 4× “Section 445.1503 defines the terms “franchise fee,” and delineates exceptions to .”
Gen. Aviation, Inc. v. The Cessna Aircraft Co., 915 F.2d 1038 (6th Cir. 1990).
“, has filed an application for rehearing on two grounds: First, that § 3(3) of the Michigan Franchise Act, Mich.Comp. Laws § 445.1503(3) applies rather than § 6(e), Mich.”
Cook v. Little Caesar Enter., Inc., 972 F. Supp. 400 (E.D. Mich. 1997).
“§ 445.1503. *412 The statute, however, offers no further clarification of what does constitute fraud or deceit under the MFIL.”
Gen. Aviation, Inc. v. Cessna Aircraft Co., 703 F. Supp. 637 (W.D. Mich. 1988).
“§ 445.1503(3), M.S.A. § 19.854(3)(3). The 1984 Agreement represents a renewal or continuation of a franchise relationship which had endured uninterrupted for at least six years prior thereto.”
Bye v. Nationwide Mut. Ins., 733 F. Supp. 2d 805 (E.D. Mich. 2010).
“Under MCL 445.1503(1), a “franchise fee” is defined as “a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Thueson v. U-Haul Int'l, Inc., 2006 Cal. Daily Op. Serv. 10265 (Cal. Ct. App. 2006).
“” (Mich. Comp. Laws Ann., § 445.1503(3)(1).) 10 A franchise fee is defined under the Washington Franchise Investment Protection Act as “any fee or charge that a franchisee .”
Rzepka v. Michael, 431 N.W.2d 441 (Mich. Ct. App. 1988).
“The "purchase option” fails the definition of a "franchise fee” pursuant to MCL 445.1503(1)(a); MSA 19.854(3)(1)(a). Affirmed.”
Bucciarelli v. Nationwide Mut. Ins., 662 F. Supp. 2d 809 (E.D. Mich. 2009).
“A franchise fee is defined in MCL 445.1503(1) as follows: “Franchise fee” means a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for…”
Little Caesar Enter., Inc v. Dep't of Treasury, 575 N.W.2d 562 (Mich. Ct. App. 1998).
“[MCL 445.1503(1); MSA 19.854(3)(1).] The parties dispute whether the Legislature intended for royalties arising from a franchise agreement to be encompassed within the 1985 franchise fee exception.”
— Mich. Comp. Laws § 445.1503(1) — 5 cases
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006).
“Under MCL 445.1503(1), a “franchise fee” is defined as “a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006).
“Under MCL 445.1503(1), a "franchise fee" is defined as "a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Bye v. Nationwide Mut. Ins., 733 F. Supp. 2d 805 (E.D. Mich. 2010).
“Under MCL 445.1503(1), a “franchise fee” is defined as “a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Bucciarelli v. Nationwide Mut. Ins., 662 F. Supp. 2d 809 (E.D. Mich. 2009).
“A franchise fee is defined in MCL 445.1503(1) as follows: “Franchise fee” means a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for…”
Little Caesar Enter., Inc v. Dep't of Treasury, 575 N.W.2d 562 (Mich. Ct. App. 1998).
“[MCL 445.1503(1); MSA 19.854(3)(1).] The parties dispute whether the Legislature intended for royalties arising from a franchise agreement to be encompassed within the 1985 franchise fee exception.”
— Mich. Comp. Laws § 445.1503(1)(a) — 2 cases
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006).
“Under MCL 445.1503(1), a "franchise fee" is defined as "a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
Rzepka v. Michael, 431 N.W.2d 441 (Mich. Ct. App. 1988).
“The "purchase option” fails the definition of a "franchise fee” pursuant to MCL 445.1503(1)(a); MSA 19.854(3)(1)(a). Affirmed.”
— Mich. Comp. Laws § 445.1503(1)(d) — 1 case
— Mich. Comp. Laws § 445.1503(3) — 3 cases
Gen. Aviation, Inc. v. The Cessna Aircraft Co., 915 F.2d 1038 (6th Cir. 1990).
“, has filed an application for rehearing on two grounds: First, that § 3(3) of the Michigan Franchise Act, Mich.Comp. Laws § 445.1503(3) applies rather than § 6(e), Mich.”
Franchise Mgmt. Unlimited, Inc v. Am.’s Favorite Chicken, 561 N.W.2d 123 (Mich. Ct. App. 1997).
“[MCL 445.1503(3); MSA 19.854(3)(3).] Giving the terms used in § 31 their defined meanings, this Court concludes that plaintiffs do not have a § 5 claim as a matter of law because the statute only imposes liability on a person who offers or sells a franchise in violation of § 5.”
Gen. Aviation, Inc. v. Cessna Aircraft Co., 703 F. Supp. 637 (W.D. Mich. 1988).
“§ 445.1503(3), M.S.A. § 19.854(3)(3). The 1984 Agreement represents a renewal or continuation of a franchise relationship which had endured uninterrupted for at least six years prior thereto.”
— Mich. Comp. Laws § 445.1503(3)(1) — 1 case
Thueson v. U-Haul Int'l, Inc., 2006 Cal. Daily Op. Serv. 10265 (Cal. Ct. App. 2006).
“” (Mich. Comp. Laws Ann., § 445.1503(3)(1).) 10 A franchise fee is defined under the Washington Franchise Investment Protection Act as “any fee or charge that a franchisee .”
— Mich. Comp. Laws § 445.1503(5) — 1 case
Franchise Mgmt. Unlimited, Inc v. Am.’s Favorite Chicken, 561 N.W.2d 123 (Mich. Ct. App. 1997).
“[MCL 445.1503(3); MSA 19.854(3)(3).] Giving the terms used in § 31 their defined meanings, this Court concludes that plaintiffs do not have a § 5 claim as a matter of law because the statute only imposes liability on a person who offers or sells a franchise in violation of § 5.”
— Mich. Comp. Laws § 445.1503(8) — 1 case
Franchise Mgmt. Unlimited, Inc v. Am.’s Favorite Chicken, 561 N.W.2d 123 (Mich. Ct. App. 1997).
“[MCL 445.1503(3); MSA 19.854(3)(3).] Giving the terms used in § 31 their defined meanings, this Court concludes that plaintiffs do not have a § 5 claim as a matter of law because the statute only imposes liability on a person who offers or sells a franchise in violation of § 5.”
— Mich. Comp. Laws § 445.1503(l)(a) — 1 case
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006).
“Under MCL 445.1503(1), a “franchise fee” is defined as “a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services.”
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